Spyker Mines the Past for Saab's Future

Saab Story: With the clock ticking loudly, Saab's new owner dusts off some old names.

In the 20 years that General Motors owned Saab, it failed to turn the Swedish automaker into a profitable business. Last year, when GM spiraled toward bankruptcy, it was faced with killing off unprofitable brands or selling them. So Saab—that sometimes innovative, strangely stylish, and somewhat professorial brand—went on the block.

The faraway Swedes never fit completely or comfortably into GM’s corporate culture, and they didn’t make money, either. “We lost several thousands of dollars on every Saab we’ve managed to sell,” says a GM source, adding: “Saab cost us more than Saturn.”

That Saab is still alive is due to Victor Muller, head of the Dutch sports-car maker Spyker and, now, CEO of Saab. It was an unlikely story. In February 2009, GM announced its intent to find a buyer for Saab, and shortly thereafter, the Swedish customs agency halted Saab production after GM stopped paying the duties on parts imported from Europe and Asia. The Swedish government wouldn’t help. In June, Swedish sports-car maker Koenigsegg pledged to take over Saab, but it soon begged off, declining to give a reason. Saab was again left on the brink when Muller turned up, and GM and Spyker eventually made a deal.

Muller, who designs cars himself—along aeronautic themes, as does Saab—has some ideas about where he wants to take the Swedish brand. Of course, Muller’s first few Saabs are those already designed under GM ownership. First up is the top version of the all-new 300-hp 9-5 Aero sedan, which starts at an eye-watering $49,990. Lesser models appear later and will start below $40,000. In spring 2011, the 9-4X crossover—a close relative of the Cadillac SRX—arrives and will be built in Mexico. Next summer, a 9-5 wagon will join the lineup. Although it is too late for the General to benefit, it seems that with these models, GM had imbued the brand with enough clean Scandinavian styling to differentiate Saab.

Muller professes to be happy with these upcoming models—but beyond that, he is putting Saab on its own feet. The decisive new cars will be the replacement for the 9-3 and a small, entry-level Saab designed to compete with the Mini Cooper. Muller is resurrecting the 92 and 900 monikers from Saab’s past, and he’s giving himself just three years to bring them to market. GM had been working on these new models, but since the sale, development has stopped. GM wanted to base the small Saab on the next Gamma platform (Chevy Aveo) and use New Delta (Chevy Cruze, Opel Astra) for the mid-size model. Muller’s Saab may now team up with other automakers to share components or platforms for the upcoming vehicles. The Chinese may be interested in working with Saab to gain a foothold in the premium segment, and a Japanese brand like Mitsubishi could benefit from the economies of scale that would result.

The Mini-fighting 92 will deviate from the stubby look envisioned by GM and instead go for a coupelike, soft-teardrop shape in the spirit of the first 92 from the 1950s. The 900 will return to its roots and play up its hatchback body style. For engines, Saab is expected to partner with BMW; the Bavarians are looking for new alliances after a deal fell through to provide Mercedes-Benz with small three- and four-cylinder engines. Saab is promising electric versions as well.

To survive, Saab must get new product to market, and thus restore customers’ faith in the brand’s future. In regard to production, Muller tells us, “We want to get the break-even point down from over 100,000 to 85,000 units annually. At the same time, we hope to actually turn out 120,000 cars shortly.” Saab’s niche has always been far from mainstream—and has been co-opted by the Audi brand (from the top) and by cars like the Toyota Prius (from below). To provide a viable alternative for those buyers, Saab needs the latest technology—and leadership with a laser-sharp focus. “I couldn’t let Saab die,” says Muller. But it’s not clear yet whether he can keep it alive.

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